What is Solana ?

Understanding Solana’s rapid growth requires a basic understanding of a problem proposed by Vitalik Buterin, known as the Blockchain Trilemma. It is widely understood that a blockchain can only optimize for two of three concepts: decentralisation, scalability, and security. Since 2016 layer one blockchain projects have launched attempting to solve this issue by creating chains that can maintain some degree of credible decentralization and security as well as scalability.

Solana is one such network that introduced a hybrid consensus model integrating a novel PoH (Proof of History) algorithm with PoS (Proof of Stake), giving the network a throughput claiming to rival TradFi payment processors such as Visa. Solana boosters say it represents a blockchain project capable of scaling to global demand; in numbers, Ethereum averages 13 transactions per second, whereas Solana has a theoretical throughput of 65,000 transactions per second. Solana arguably sacrificed decentralization in favor of scalability, but this has been the core factor driving the network’s popularity as greater scalability equates to faster transactions at lower costs.

Solana has risen to prominence, and a portion of the activity on the Ethereum network has migrated to this blockchain with lower gas fees and less congestion. A key growth area is the NFT space, and this article provides the reader with everything they need to know to become an active participant in the Solana network and begin minting, trading, and selling NFTs.  

Solana NFTs

In short, a Solana NFT is simply an NFT stored on the Solana blockchain.

But what does that mean, exactly? An NFT or Non-Fungible Token is a blockchain-based certificate verifying ownership. These cryptographic assets and their contained metadata are unique and, therefore, non-fungible. The concept of fungibility relates to the quality of interchangeability; a dollar can be exchanged for another dollar, a bitcoin can be exchanged for another bitcoin, and a SOL can be exchanged for another SOL; hence these items are fungible. Something which is non-fungible cannot be exchanged, and many (but not all, such as ERC-1155s) NFT are unique and individual;

How do Solana NFTs Work?

Solana differentiates itself from the majority of alternative layer one projects given that it is not EVM (Ethereum Virtual Machine) compatible. Solana uses a unique coding language Rust, as opposed to Solidity. Subsequently, Solana has a different token standard.

Returning to Solana’s hybrid consensus mechanism, it must be remembered that Solana was designed centrally around the belief of mass adoption, and therefore speed and scalability lies at its heart.

Any blockchain consists of four main elements: a peer-to-peer network, cryptography, a consensus algorithm, and punishment and reward. To deliver incredible throughput, Solana blends PoS and PoH. Proof of Stake refers to nodes in the network committing tokens for a time period in exchange for the opportunity to be selected to validate the next block of transactions and earn a reward. Proof of History refers to the method of validating the order or sequence of transactions. Solana’s blockchain is segmented into periods of time, slots; the period in which each leader ingests transactions and produces a block. Leader nodes keep track of the passage of time. This time stamping solution allows transactions to be verified as valid by the rest of the network without filling an entire block, reducing latency and boosting throughput.

Methodology

• What we will see in this dashboard are
• In this query, solana.fact_swaps , solana.core.fact_nft_sales, solana.core.dim_labels table is used.
• By joining the above three tables and using functions, I was able to achieve the following results.

  • Daily Average Sales Price and 14-day moving average

  • Sales volume (daily/weekly/monthly)

  • Total Sales Volume

  • Average Buyers/Day

  • Total Unique Buyers

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Sale Volume Over Time - Daily/Weekly/Monthly

• Suites has dominated the sales volume (daily).
  • Daily number of sales tell another story with collectorz club and Hockey Heros dominating more days as compared to the sale volume..
• The weekly and monthly numbers tell the same story, highest weekly is 21K $USD during Sep 26, 2022 the highest monthly is Aug 2022 with 70K $USD in sales.

The data is from the last 90 days to the current date.

observations

Sales Volume(Total)

• collectorz club gen 1 with 20K $USD.

• Suites about $120,000 in the last three months

  Buyers/Day | Total Unique Buyers(Average )

  • There have been more than 10 buyers per day, and on August 5, more than 40 unique buyers in NFT for collectors.
  • Looking at the total number of unique buyers The Suites have dominated the overall with about 300 unique buyers in total.
  • The suites is the only NFT with consistent buyers over time.

Daily Average Sales Price (14-day) moving average

• The Suites and the Laidback Lions had similar moving average until Aug 24, 2022, however Suites have seen a huge rise in the 14-Day

• Daily average sale price has been quite variable with different NFTs dominating the daily scene.

  • Some days it is the Suites, and others it is the Collectorz Club Gen1

  
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Conclusion

• The high number in all transactions can be attributed to the superiority of Solana NFT for suites
• Specially in the last few weeks where the number of sales and sales volumes has just exploded.
• The superiority of Sweets compared to Collectorz Club Gen1 was twice as long.
• Daily Average Sales Price and 14-day moving average
• Sales volume (daily/weekly/monthly)
• Total Sales Volume
• Average Buyers/Day
• Total Unique Buyers
• Suites has dominated the sales volume (daily).
• Daily number of sales tell another story with collectorz club and Hockey Heros dominating more days as compared to the sale volume..

THANK YOU FOR READING!

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